Vietnam-Japan economic ties hoped to thrive after TPP

The Trans-Pacific Partnership (TPP) agreement is expected to help Vietnam and Japan move forward with win-win economic cooperation, specifically in the fields of support industry and agriculture, said Deputy Prime Minister Hoang Trung Hai.

Vietnam hopes the Japanese Government and business community will continue to make investments in Vietnam, particularly in electronics, agricultural machines, agro-forestry processing, shipbuilding, environment, energy saving, and automobile spare parts manufacturing, Hai was speaking at a forum in Hanoi on October 14.

He affirmed that the Vietnamese Government pledges to work closely with the Japanese side to improve business environment in order to make the country an attractive market for businesses in the future.

According to a representative from the Japan External Trade Organisation (JETRO), the rate of using locally-produced components in Vietnam is now about 33 percent, compared to 55 percent and 43 percent in Thailand and Indonesia, respectively.

To become a manufacturer and supplier of spare parts for foreign countries, it is imperative for Vietnam to develop support industry and small-and medium-sized enterprises (SMEs), he noted.

JETRO will implement business connectivity between the two countries and introduce the latest agricultural technologies of Japan to Vietnamese partners, he added.

The organisation revealed that among 521 Japanese SMEs wishing to invest in emerging markets, up to 130 companies want to pour cash into Vietnam.

President of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the agency will actively work with JETRO and the Japanese Embassy in Vietnam to facilitate business cooperation between the two nations so that Vietnam could forge ahead with improving infrastructure, developing support industry and becoming a key supplier of farm produce and seafood for Japan.

Japan is one of the biggest trade partners of Vietnam with over 37.7 billion USD of registered investment capital in 2,661 projects operated by 1,500 businesses. Two-way trade hit 27.6 billion USD last year and 19 billion USD in the first eight months of this year.